Victoria Gold with President & CEO John McConnell

Good afternoon everyone. Somebody suggested I was dressed a little casually but I was actually, an hour ago, I was in T-shirt, shorts and flip flops I think I've dressed up for this. I wish I could say I was happy to be here and if any mining company CEOs says they are happy to be here, I would walk right by their booth if I were you because they're lying through their teeth.

Transcript

00:00:08 Good afternoon everyone. Somebody suggested I was dressed a little casually but I was actually, an hour ago, I was in T-shirt, shorts and flip flops I think I've dressed up for this. I wish I could say I was happy to be here and if any mining company CEOs says they are happy to be here, I would walk right by their booth if I were you because they're lying through their teeth.

00:00:37 This is the second days we've have in Vancouver in nine months in my recollection and I think last weekend was nice but I was up in the Yukon and it was miserable there. Anyway, I'd far rather be out in garden, sitting on the deck with a gin and tonic right now. I will be there in about an hour and a half.

00:01:02 Anyway, on to Victoria, forward-looking statement, everybody's seen those. I think what really separates us from many other companies here is that we have a fully permitted asset in a safe jurisdiction that in production will produced over 200,000 ounces per year. Now I don’t think you can name any other project out there that meets that metric. Very unique company and a very unique project. Three large shareholders, sun valley gold is our largest shareholder.

00:01:39 Interestingly, they've purchased most to their position in the market over the past six years. Electrum on the other hand became a shareholder just about exactly a year ago now. They did about six months of due diligence on Victoria and the Eagle project and approached us a year ago and said we'd like to make a private placement. After a couple of weeks of negotiating, we did reach and agreement with them and they invested 18 million in Victoria. Later in the year in August of last year, they also participated in a bat deal financing so they are right around 15 percent.

00:02:23 Feasibility study highlights. You can see the reserves there and I emphasize reserve. I'm uphold that a number of resource calculations I see out there these days. This is a very solid number. The depositors has been drilled off on 25 meter centers. The first three years of production have been drilled of at 12.5 meter centers. We have very large mine at over 12 million tons of ore per year.

00:02:55 What really makes this property work is a strip ratio at less than one to one. Capital cost, I'm going to talk in U.S. dollars, just under 300 million. Cash cost per ounce, less than 5.50 and all in sustaining cost, less than 6.50. In the lower quartile, in terms of cost, you case the economics there at 12.50 gold and $0.78 Canadian dollar. The NPV is well over 500 million. The IRR is just under 30 percent.

00:03:37 Now I talked about Sun Valley and Electrum being large shareholders. The reason there, own Victoria is in that box in the top right there. Their gold balls. They think gold is going to $2,000 in the short term and $20,000 in the long term. You can see what happens even at 2,000. the (NPV) goes to well over a billion and the IRR, it's over 50 percent.

00:04:10 Now I'm going to show a quick animation that tells you a little more about the project and then I'll speak again. It takes about Minutes. It's and done a much better job that can I do.

00:04:30 [Video Clip Starts] Victoria Gold, Eagle Gold project is a proposed, fully permitted in Valley heat gold project to be the largest gold mine in Yukon history. The Eagle Gold Project is located in Central Yukon which is recognized as a safe mining jurisdiction. They deposit lives within the Tintina Gold Belt and is located approximately 85 kilometers by road, North, Northeast from Mayo and about 400 kilometers north of the capital city of Whitehorse. The project is well supported by local infrastructure including an existing construction cam and all whether access road is near great power in an airs trip 40 kilometers to the south.

00:05:14 The Eagle Gold project is fully permitted. The feasibility study and environmental assessment process are complete, all major permits are in hand and the comprehensive cooperation benefits agreement with the first nation of the Na-Cho Nyak Dun is in place.

00:05:35 Initial construction and pre stripping cost are estimated $288 million. Construction of the mine will take approximately one year. During operations, the mine will be a significant economic contributor to the Yukon, employing 350 to 400 people. The Eagle Gold resource runs in an east west direction for over 1050 meters and to a depth of 475 meters. Combined, approve and in probable reserve, totals 2.7 million ounces of gold. The miniralization of the deposit is open along side and at depth.

00:06:16 The proposed Eagle Gold Mine is a technically straightforward, low cost, open pit mine with a three stage crash, in Valley hip and called recovery plan with a 10 plus year main life. When compete, the open pit will be 1300 meters long by 440 meters wide and adapt to 475 meters. In the open pit, following blasting, rock, not host in gold will be hold to waist rock storage facility.

00:06:48 Run of mine facility by taking advantage of tracking run of ore mine to their primary hit facility. The strip ratio is 0.8 to 1. Higher grad, gold bearing or is hold to the primary crasher and then conveyed onward to the secondary and tertiary treasures.

00:07:08 One crashed to approximately 6.5 millimeters, the gold baring ore is conveyed to the primary heat facility, that has a double line pad installed to contain the gold baring solution. The primary heat facility would be constructed in three faces, starting from the lower portion of the valley and progressing upwards. The primary heat facility is comprise of a solution sump, piping, leak detection and recovery and monitoring systems.

00:07:39 Mobile stockers will stuck that crashed ore in 10 meter lifts with solution in meters installed approximately one meter beneath the surface for us, protection. Gravity draws the solution downwards as it releases and absorbs the goal, the pregnant or gold baring solution collects into wells and is pump to the gold recovery plant.

00:08:01 In the gold recovery plant, the gold is removed from the solution, smelted and pour into doorway bars. The solution which no longer contains gold is recycled and pump back to the primary heat facility to repeat the process. Over the ten year life of mine, the Eagle Mine will produce 1.7 million ounces of gold at an average of approximately 2000 ounces per year. The projects economics are robust and we'll generate and after tax, net present value of approximately $508 million with a capital payback period of 2.8 years. Mining will process 33,700 tons of ore per day, equating to 12.3 million tons per year, and 123 million tons over the life of the mine. Additionally, the mine plan benefits from a favorable strip ratio of 0.95:1. The 2016 feasibility study includes the addition of a satellite deposited all of located approximately 2 kilometers from Eagle. In year seven, crash ore will be conveyed to the secondary heat facility near olive. In year nine, a higher grade open pit at olive will come into production with all olive ore to be processed on the secondary heap facility.

00:09:32 With changing economics there is potential to extend the mine life at Eagle for an additional 6 to 10 years. There is also potential to increase production with the expansion of the Olive-Shamrock Zone. In addition to the Eagle deposit and the Olive-Shamrock Zone, the large Dublin Gulch property host a number of high quality exploration targets that lie along the Potato Hill Trend, a 13 by 3 kilometer known trend of significant mineralization. Victoria Gold also holds additional claim blocks nearby including on the adjacent VBW property.

00:10:12 Victoria's Gold's strong and experienced Board of Directors and solid management team with mind building know how are focused on bringing the Eagle Gold Project into production. Victoria Gold trades on the Toronto Venture Exchange under the symbol VIT. [Video Clip Ends]

00:10:49 I think you'll agree the video does a great job of explaining the company and our project. I'm just going to skip that last slide because it was covered in the video. I do want to talk a little more about infrastructure. The video talked about this. It's really important to point out for mind development that we actually have great infrastructure in place.

00:11:14 Those blue lines you see on the map are paved highways. We have a paved highway within 35 kilometers of the project site. The blue lines are also the power corridors so we have grid power within 35 kilometers.

00:11:32 The town of Mayo is about 55 kilometers to the south. It's quite a small town but importantly, it has a full service airport. As you can see, we do enjoy good infrastructure.

00:11:46 Big part of my focus these days is project financing. About two months ago, we signed a letter of engagement with BNP, a very large Europe an bank to provide a debt facility of 220 million. That work is going very well and I think we'll have a full commitment there within the next two to three weeks.

00:12:13 We have 40 million in the treasury again I'm talking U.S. dollars. Our funding construction gap is about 40 million. I think with a market cap of 350 million, that is very doable. I think you'll see us move forward with a fully financed solution over the next few months.

00:12:39 Current schedule, we're going to start doing some construction this year. Our real focus right now is exploration. The video talked about all of Shamrock. We currently have two drills running there. We have two drills drilling other targets on the Potato Hills trend. You're going to start to see a lot of news flow coming out of Victoria over the next two months.

00:13:09 This just breaks down the exploration. We actually do have that airborne unit on site right now. We're flying the entire claim block including the VBW block with airborne. Just a second on officers and directors, in the back there is Tony George. Tony recently joined us and will be at our booth a little bit more this afternoon. Tony has brought a wealth of experience in terms of mine building to the team.

00:13:49 We work together at De Beers. He was building the Victor Mine when I was building the Snap Lake Diamond Mine. He's gone to build other mines since then and is a great addition to our team. On the board side, I'm honored every time we have a board meeting at the quality of people I have on the board and believe me, this is no old boys club. These guys put me through my paces on a monthly basis.

00:14:22 Particularly Sean Harvey, he's been with me since the beginning. Just a brilliant man, understands mining and capital markets. Len Cole and Mike McGuiness are both very seasoned Explorationist. Chris Hill is a very experienced financial guy. Then recently joining the board are Heather White and Patrick Downey.

00:14:50 Now I think everybody if you follow junior mining know Patrick Downey. He just became the CEO of Ore Zone. He's also an interesting guy because he's a metallurgist, very strong technically. He also has a very good knowledge of capital markets. I rely on him a lot as well. Heather White, people don’t know very well. She's a very experienced mining engineer, has built and operated numerous mines in the North. We'll really be leaning on her as we move forward with the development of Eagle.

00:15:31 If any of you were in Brent Cook's presentation earlier today. He puts up a slide like this. Brent is a very practical economic geologist. He doesn’t like to hear just great. He likes the metric we show at the bottom here that looks at recovered grade per ton material moved so that you're taking into account grade recovery and strip ratio.

00:16:02 My Chairman Sean Harvey has called this the McConnell index. I was embarrassed recently when at another one of these forums somebody in the audience asked where the project – this other company's project fit in the McConnell index. I think I might have to remove that.

00:16:23 This is just NPV as a percentage of initial capital. It's a metric I use personally when I'm looking at companies. It's just a quick test if it's less than 100 percent I'm not interested because as we all know, shit happens in mining. One little thing goes wrong, the banks own the property and the company is bankrupt.

00:16:51 I look for the NPV as a percent of initial capital to be well over 100 percent. I won't go into the P/NAV's. I see I'm running of time here. I think the time keeper actually started the clock late.

00:17:10 I talked about strip ratio, very important. The other important thing is being in Canada. You can see three years ago the Canada-U.S. exchange rates started to separate. We now have really a 10 year high in gold price in terms of Canadian dollar, makes a huge difference if you're operating a mine in Canada.

00:17:37 Analyst coverage, we enjoyed great coverage. Six analysts cover the stock. I think the average target price is over a dollar so if you don’t believe my BS, maybe you'll believe their BS.

00:17:53 Why invest in Victoria? I don’t need to go through this summary. I'll just let you read it. I'll be at our booth just back here for another hour and then I'll be on my deck.